US demands during NAFTA negotiations may not be sufficient to return jobs to the country's automobile sector

During negotiations on the North American Free Trade Agreement, US demands may not be enough to return jobs to the automobile sector of the country, Reuters reports. Mark Wakefield from the consulting company AlixPartners notes that the increase in tariffs is not large enough and will not cause large-scale changes. Automakers are unlikely to give up multi-billion investment in enterprises and supply chains outside the US. To offset the expenses, it will be easier for them to pay duties of $800-900 per car and buy inexpensive parts from Asia. Vehicles that do not have enough components manufactured in the US or North America may be subject to tariffs of 25% in accordance with NAFTA regulations.

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